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LIBRftRY OF CONGRESS 



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HolUn ger Corp. 
pH 8.5 



No. 162. 

Board of 
Estimate and Apportionment 

CITY OF NEW YORK 



REPORT BY THE 

, BUREAU OF FRANCHISES 



UPON THE APPLICATION OF 



The Automatic Scoreboard Company, Inc. 



for the right to construct, maintain and operate electric wires in the 
Borough of Manhattan for the purpose of operating a 
system of automatic baseball scoreboards. 



FEBRUARY 24, 1917 



M. B. BROWN PRINTING & BINDING CO.. 
37-41 Chambers Street, N. Y. 



D, of D, 

MAR 9 1917 



Board of Estimate and Apportionment, 
The City of New York, 
Bureau of Franchises, 
Room 1307, Municipal Building. 

February 24, 1917. 

Hon. John Pureoy Mitchel, Mayor, Chairman of the Board of Estimate and Appor- 
tionment; 

Sir— By a petition dated April 24, 1916, presented to the Board on May 5, 1916, 
the Automatic Scoreboard Company, Inc., applied to the Board for the right and 
privilege 

"to construct, maintain and operate electrical conductors in and through the 
streets and highways of the City of New York, for the purpose of operating 
automatic baseball scoreboards, to be located on the premises of subscribers." 
In this petition the Company also requested a temporary permit to authorize operation 
pending the grant of a franchise. 

On May S, 1916, the Board adopted a resolution fixing Friday, June 2, 1916, as 
the date for the preliminary hearing on the petition, notice of which was duly pub- 
lished in newspapers designated by the Mayor. The preliminary hearing was held on 
June 2. As no similar system had ever before been operated in this city, nor (so far 
as can be learned) in any other city of the country, except San Francisco, where an 
experimental operation was carried on by the persons interested in the present project, 
for a very short period in 1915, there was but little information available upon which 
terms and conditions for a franchise could be based, although the operation in San 
Francisco had demonstrated to the satisfaction of the persons interested the prac- 
ticability of the mechanical features of the system. It was considered desirable, 
therefore, in order to demonstrate the commercial possibilities of the system and 
also to obtain data as to overhead charges, cost of maintenance and operation and 
as to a proper schedule of rates for service, that a revocable privilege be granted to 
authorize temporary operation of the service. A resolution was therefore adopted 
on June 2, 1916, at the close of the preliminary hearing, granting the Company a 
revocable privilege for a maximum term of six months to maintain and use electrical 
conductors and to operate, by means thereof, twenty automatic baseball scoreboards 
on premises of subscribers in the Borough of Manhattan. It was specified that the 
electrical conductors should be hired or leased from the New York Telephone Com- 
pany, and the Company was required to pay $300 for the privilege. Such payment 
was made and the Company operated under the privilege during the baseball season 
of 1916. 

The results of the operation were furnished to the Board under date of December 
9, and, on the basis of the information furnished, a form of contract has been 
drawn up. 



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History of the Company and Its Operations. 
The Automatic Scoreboard Company, Inc., is a corporation formed by a certificate 
filed on April 22, 1916, under Article 9 of the Transportation Corporations Law. The 
purposes of the corporation, as stated in the certificate, are — 

"constructing, owning, leasing, renting, using, maintaining and operating lines of 
telegraph or electrical conductors for public or private use; of constructing, own- 
ing, leasing, renting, using and maintaining and operating apparatus to be used 
in connection therewith ; of installing such wires or apparatus in or on public or 
private buildings or grounds ; of connecting such apparatus and wires or con- 
ductors ; of automatically exhibiting by scoreboards or other apparatus informa- 
tion or messages transmitted, and of leasing, renting, using, maintaining and oper- 
ating said wires and apparatus." 
Its capital stock is fixed at $25,000, all of which has been issued, and its existence is 
limited to fifty years. 

The Company is said to be the owner of a patented automatic scoreboard device 
to be used for exhibiting the results of baseball games. It is proposed to install 
the boards in cafes, grill rooms, halls, theatres and other semi-public places, upon the 
payment of a fixed sum per season, per week or per day. The boards are thirty 
inches high by thirty-five inches in width and about six inches in depth. By means 
of electrical impulses transmitted from the central office, a hand is made to revolve 
around a diamond shown on the board, indicating the progress of the batsman from 
base to base. Various symbols, either letters or numbers, are also shown indicating 
the incidental plays in the course of the game. The names of the players of the op- 
posing teams are placed on cards, which are changed manually whenever necessary. 
At the central office from which the boards are operated, information as to the 
progress of the game will be received from the baseball park. It has not as yet been 
determined how many boards may be operated or how large a district may be covered 
from one central office. 

Under the revocable privilege granted by the Board on June 2, above referred to, 
the Company installed eighteen boards on the premises of subscribers, within the 
boundaries of the Bryant Exchange of the New York Telephone Company, the latter 
company furnishing the wire circuits. The boards were operated from a central 
office maintained by the Company at 243 West 42nd Street. The service commenced 
on June 24, and terminated on October 12. Only nine of the subscribers received 
service for more than fifty days, the remainder being for shorter periods. 

The gross receipts of the Company from its service amounted to $1,827.40. The 
average rates charged varied from $1.12 per day to $3.10 per day. In two cases, 
where the service was furnished to places of amusement charging an admission fee, 
$9 and $10 per day was received. All the other boards of the Company were located 
in hotels, cafes, grill rooms, and other places of that character. 

The operating expenses of the Company amounted to about $2,800, the largest 
items of which were sums paid to the New York Telephone Company for wires leased 
and to the New York American for news service. The expenses also included the 
sum of $300 paid to the City for the privilege. 

The Company now proposes to extend its operations, having secured one hundred 



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additional boards. It desires the right to cover the entire Borough of Manhattan. 
The Company contemplates continuing the use of the New York Telephone Company's 
wires. The rates charged by the latter company for its wires are $50 per year per 
mile of circuit. Where the use of the circuit is for less than one year, as in the 
present case, the baseball season being for approximately six months, a proportionate 
rate is charged, to which is added a concession or short charge, which is one-quarter 
of the charge for the unexpired portion of the year. 

While the results of the temporary operation were not perhaps conclusive as to 
the commercial possibilities of the service, nevertheless sufficient information has 
been obtained to permit the drafting of a proposed form of contract, the principal 
features of which are as follows : 

Proposed Form of Contract. 
Extent of Privileges to be Granted — 

It is proposed to grant the Company the right to laj', construct, maintain and 
operate wires or other electrical conductors, in the Borough of Manhattan, for the 
purpose only of operating automatic baseball scoreboards. It is expressly provided 
that the Company shall not construct any subways or ducts of its own. Should the 
Company desire to lay its own wires, it is required to place them in the ducts of the 
existing electrical subways now maintained under contract with the City. In no 
event are any electrical conductors to be placed overhead in the streets. In lieu, 
however, of constructing its own electrical conductors, the Company is authorized to 
use wires heretofore lawfully constructed and maintained in the streets. This will 
permit the lease of wires from the New York Telephone Company. 
Term of Grant — 

It is suggested that the grant be made for an original term expiring December 
31, 1921, with the privilege of renewal, upon a revaluation, for an additional period 
of five years. 

The system being a new one, it would seem that the grant should be restricted to 
a short term. If there is a field for a service of this kind, it will no doubt be de- 
veloped in the first five years, and the Board, knowing its possibilities, will then be in 
a better position to handle it. 
Compensatio n — 

The Company is required to pay, as initial payments, $1,000 within thirty days 
after the contract is signed by the Mayor, and $1,000 on or before April 1, 1918. 
The annual payments have been fixed as follows : 

During the first year, or portion thereof, expiring December 31, 1917, a sum 

equal to three per cent of the gross receipts, with a minimum of $400. 
During the second year, expiring December 31, 1918, a sum equal to four per 

cent of the gross receipts, with a minimum of $800. 
During the remaining three years of the original term, five per cent of the gross 
receipts, with a minimum of $1,500. 
These receipts are to include all sums received by the Company in any manner out of 
or in connection with the operation of its system. 

The suggested percentages and minimums for the first and second years were 



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kept as low as possible in order not to overburden the Company during the formative 
period. It is not expected that the business will show any considerable profit during 
this time. 

Security Deposit — 

The Company is required to deposit $3,000 in cash with the Comptroller, as 
security for the faithful performance of the contract. 
Obligation to Furnish Service — 

The Company is required to furnish service to any person, firm or corporation 
applying for same, whose premises are located within one mile in any direction from 
any central office maintained by the Company and who or which shall agree to pay 
for such service for at least one month. 

It is believed that this provision will be adequate to insure the service to all 
those desiring it. The Company's business is of a kind that will be most used in the 
hotel and amusement centers of the City, and it is the purpose of the Company to 
establish central offices wherever the volume of the business will justify it. 
Rates for Service — 

The following maximum rates have been suggested : 

To subscribers making seasonal contracts, $180 per board per season. 

To subscribers making monthly contracts, $35 per board per month. 

Seasonal service is to cover the regular baseball season beginning April IS and 
ending October 15 in each year. 

In addition to the above charges, the Company is permitted to charge for special 
service in connection with the "World's Series" of baseball games, which service is 
not included in the seasonal or monthly service. For this special service, not to exceed 
$5 per board per day may be charged to regular subscribers and not to exceed $20 per 
board per day to subscribers taking the special service only. 

The maximum rates suggested are such as the Company believes will insure a fair 
profit and still make the proposition attractive. The rate for the "World's Series" 
service to special subscribers seems rather high as compared to rates for similar 
service to regular subscribers, but when it be considered that the boards must be 
installed and connected, at the usual cost, for a service which may cover but four 
and cannot exceed seven days, this higher charge seems to be justified. 

The Board is to have power to regulate all rates for service at any time during 
the life of the grant. 
Grant Not Exclusive — 

The Board reserves the right to grant similar franchises to any individual or 
other corporation, should it see fit. This is the usual clause inserted in all franchise 
grants by the Board. 
Annual Reports — 

The Company is required to furnish annual reports to the Board and also to the 
Comptroller, on or before February 1 of each year, giving full particulars in regard 
to its operations for the year ending December 31 preceding. These reports will keep 
the Board informed as to the progress of the Company's business and enable the 
Comptroller to check up and fix the amount of the payments due the City. 



Other Conditions — 

All the usual franchise conditions have been inserted, reserving to the City con- 
trol of the streets and of the operations of the Company therein. The Board reserves 
the right not only to collect liquidated damages for failure to observe the franchise 
conditions, but also to revoke the grant for the same reason. 

At a conference held in this office on February 16. the provisions of the contract 
were discussed with Mr. R. H. Long, representing the Company, and he signified that 
the contract in the form suggested would be satisfactory to the Company. Under 
date of February 20, 1917, the Company addressed a letter to the Board to the same 
effect. 

Copies of the petition were sent to the President of the Borough of Manhattan 
and to the Commissioner of Water Supply, Gas and Electricity, with the request that 
these officials inform the Bureau whether they had any objections to offer or any 
suggestions to make in regard to the proposed grant. A reply was received from 
the President of the Borough of Manhattan under date of January 18, 1917, and from 
the Commissioner of Water Supply, Gas and Electricity under date of January 19, 
1917. Both of these officials state that they have no objections to offer to the 
proposed grant, nor any suggestions to make, except that should the Company con- 
struct its own electrical conductors, plans should be filed with their departments. 
Provisions requiring this have been inserted, as they are inserted in all franchise 
grants. 

A copy of the proposed contract has been submitted to the Corporation Counsel 
for his approval as to form. Should the Board desire to make the grant, and the 
approval of the Corporation Counsel have been received, I would suggest that a 
resolution be adopted ordering the form of contract to be set forth in the minutes 
and in the City Record, fixing Friday, April 6, 1917, as the date for the final hearing 
on the petition, and directing" notice of such hearing published in the newspapers 
heretofore designated, all as required by law. Respectfully, 

HARRY P. NICHOLS, Engineer, Chief of Bureau. 



Proposed Form of Contract. 

This Contract, made and executed in duplicate this day of 

,19 , by and between The City of New York (hereinafter 
called the City), party of the first part, by the Mayor of said City, acting for and 
in the name of said City, under and in pursuance of the authority of the Board of 
Estimate and Apportionment of said City (hereinafter called the Board), and The 
Automatic Scoreboard Company, Inc. (hereinafter called the Company), party of 
the second part, witnesseth : 

In consideration of the mutual covenants and agreements herein contained, the 
parties hereto do hereby covenant and agree as follows : 

Section 1. The City hereby grants to the Company, subject to the conditions 
and provisions hereinafter set forth, the right and privilege to lay, construct, main- 
tain and operate suitable wires or other electrical conductors in, through and under 
the streets and highways in the Borough of Manhattan, in the City of New York, 
for the purpose of operating automatic baseball scoreboards, to be located on the 
premises of subscribers. It is expressly provided that the right and privilege hereby 
granted shall not include the right or privilege to construct, maintain or operate ducts, 
conduits or subways in any street or highway. 

In lieu of laying or constructing" its own wires or other electrical conductors, the 
Company is hereby authorized to rent or lease from any corporation wires or other 
electrical conductors which may have been lawfully constructed within the streets 
and highways. 

Sec. 2. The grant of this right and privilege is subject to the following condi- 
tions : 

First — The said right and privilege to lay. construct, maintain and operate wires 
or other electrical conductors shall be held and enjoyed by the Company from the 
date upon which this contract is signed by the Mayor to and until December 31, 1921, 
with the privilege of renewal of said contract for the further period of five (5) years 
upon a fair revaluation of said right and privilege. 

If the Company shall determine to exercise its privilege of renewal, it shall make 
application to the Board, at any time not earlier than two (2) years and not later 
than one (1) year before the expiration of the original term of this contract. The 
time within which such application for renewal must be made is of the essence of 
this contract, and a failure of the Company to present its application within the time 
fixed shall be considered as an election on the part of the Company not to take 
advantage of the renewal privilege, and as a relinquishment of its right to such 
renewal, in which event the franchise shall terminate on the last day of the original 
term of this contract. The determination of the revaluation shall be sufficient if 
agreed to in writing by the Company and the Board, but in no case shall the annual 
rate of compensation to the City be fixed at a less amount than the sum required to 
be paid during the last year prior to the termination of the original term of this 
contract. 



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If the Company and the Board shall not reach such agreement on or before the 
day nine (9) months before the expiration of the original term of this contract, then 
the parties herebj' agree that the annual rate for the renewal term shall be determined 
by three disinterested persons selected in the following manner : 

One disinterested person shall be chosen by the Board ; one disinterested person 
shall be chosen by the Company these two shall choose a third disinterested person, 
and the three so chosen shall act as appraisers and shall make the revaluation afore- 
said. Such appraisers shall be chosen at least six (6) months prior to the expiration 
of the original term of this contract, and their report shall be filed with the Board 
within three (3) months after they are chosen. They shall act as appraisers and not 
as arbitrators. They may base their judgment upon their own experience and upon 
such information as they may obtain by inquiries and investigations without the pres- 
ence of either party. They shall have the right to examine any of the books of the 
Company and its officers under oath. The valuations so ascertained, fixed and agreed 
to by any two of such appraisers shall be conclusive upon both parties, but no annual 
sum shall, in any event, be less than the sum required to be paid for the last year 
of the original term of this contract. If in any case the annual rate shall not be 
fixed prior to tlie termination of the original term of this contract, then the Com- 
pany shall pay the annual rate theretofore prevailing until the new rate shall be 
determined, and shall then make up to the City the amount of any excess of the 
annual rate then determined over the previous annual rate. The entire expense of 
such appraisal shall be borne jointly by the City and the Company, each paying one- 
half thereof. 

Second — The Company shall pay to the City for this right and privilege, during 
the original term of this contract, expiring December 31. 1921, the following sums 
of money: 

(a) The sum of one thousand dollars ($1,000) in cash v.'ithin thirty (30) days 
after the date upon which this contract is signed by the Mayor and before anything 
is done in exercise of the right and privilege hereby granted, and the further sum 
of one thousand dollars ($1,000) in cash on or before April 1, 1918. 

The sums herein named are in addition to the annual sums required to be paid 
under paragraph (b) following. 

(b) During the first year, or portion thereof, expiring December 31, 1917, a 
sum which shall be equal to three (3) per cent of its gross receipts for such year 
or portion thereof, but which sum shall not be less than four hundred dollars ($400). 

During the second year, expiring December 31, 1918, a sum which shall be equal 
to four (4) per cent of its gross receipts for such year, but which shall not be less 
than eight hundred dollars ($800). 

During the last three years, expiring December 31. 1921, an annual sum which 
shall be equal to five (5) per cent of its gross annual receipts, but which shall not be 
less than one thousand five hundred dollars ($1,500). 

The gross annual receipts mentioned above shall be the gross annual receipts 
of the Company, from whatever source derived, either directly or indirectly, in any 
manner, out of or in connection with the operation of automatic baseball scoreboards. 



10 



The annual charges shall commence from the date upon which this contract is 
signed by the Mayor. 

The annual charges as above shall be paid into the treasury of the City on Feb- 
ruary 1 of each year and shall be for the amount due to December 31 next preceding. 

Any and all payments to be made by the terms of this contract to the City by 
the Company shall not be considered in any manner in the nature of a tax, but such 
payments shall be made in addition to any and all taxes of whatsoever kind or de- 
scription, now or- hereafter required to be paid by any ordinance of the City, or 
resolution of the Board, or any law of the State of New York. 

Third — The right and privilege hereby granted shall not be assigned or trans- 
ferred, either in whole or in part, whether by consolidation, merger, reorganization 
or otherwise, or leased or sublet in any manner, either in whole or in part, without 
the consent of the City, acting by the Board, evidenced by an instrument under seal, 
anything herein contained to the contrary thereof in any wise notwithstanding, and 
the granting, giving or waiving of any one or more of such consents shall not render 
unnecessary any subsequent consent or consents, nor shall the title thereto, or right, 
interest or property therein pass to or vest in anj' other person or corporation what- 
soever, either by the act of the Company or by operation of law, whether under the 
provisions of the statutes relating to the consolidation, merger or reorganization of 
corporations, or otherwise, unless the proposed successor in title to the rights of the 
Company shall file with the Board an instrument under seal, agreeing to assume and 
be bound by each and all of the terms and conditions of this contract and agreeing 
to waive any more favorable conditions created by its charter or any statute relating 
to the consolidation, merger or reorganization of corporations or otherwise. The 
filing of such agreement shall constitute a condition precedent to the passing to, or 
vesting in such proposed successor in title to the rights of the Company, of the 
right and privilege hereby granted, or of any portion thereof, or of any right, interest 
or property therein. In case of failure of such proposed successor in title to the 
rights of the Company to file such agreement within sixty (60) days after the date 
on which such succession in title is to take effect, the right and privilege hereby 
granted may be forfeited, or the consent of the City provided for herein may be 
revoked bj' resolution of the Board. 

Fourth — Nothing in this contract shall be deemed to affect in any way the right 
of the City to grant to any individual or other corporation a similar right or privilege 
upon the same or other terms and conditions. 

Fifth — The wires or other electrical conductors and equipment, whether con- 
structed by the Company or rented or leased from any corporation, shall not be 
used or employed for any other purpose than the operation of automatic baseball 
scoreboards, and the Company binds itself not to lay, use, lease or operate wires 
for illegal purposes, nor to furnish service to premises used for illegal purposes. 

Sixth — Should the Company lay or construct its own wires or other electrical 
conductors, the same shall be placed in ducts, conduits or subways maintained by the 
company or corporation having control of the electrical subway system under the 
provisions of law, or in ducts, conduits or subways maintained by the City, should 



11 



the City hereafter construct its own subway system or succeed to the rights of any 
company or corporation maintaining any such system. 

No cables, wires or other electrical conductors shall be strung by the Company 
above the surface of any street or highway. 

Seventh — The wires or other electrical conductors hereby authorized shall be con- 
structed, maintained and operated subject to the supervision and control of all the 
authorities of the City who have jurisdiction in such matters, as provided by the 
Charter of the City, and in strict compliance with all laws or ordinances or depart- 
mental rules or regulations now in force or hereafter enacted or adopted affecting 
the construction, maintenance or operation of wires or other electrical conductors. 

No construction, reconstruction or repair of said wires or other electrical con- 
ductors or equipment within the streets shall be commenced until written permits 
have been obtained from the proper City otticials. In any permits so issued, such 
officials may impose such conditions as a condition of the granting of the same, as 
are necessary for the purpose of protecting any structures in the streets and avenues 
and for the proper restoration of such streets and avenues over which such officials 
have jurisdiction, and the Company shall comply with such directions. 

Eighth — During any work of construction, reconstruction or repair of the wires 
or other electrical conductors or equipment hereby authorized, the Company shall 
also, at its own cost and expense, protect any and all existing structures belonging to 
the City. All such work of construction, reconstruction or repair shall be done in 
the manner prescribed by the proper City officials. 

The right and privilege hereby granted to construct, maintain and operate wires 
or other electrical conductors shall not be in preference or in hindrance to the right 
of the City to perform or carry on any public works, and should the said wires or 
other electrical conductors or equipment of the Company in any waj- interfere with 
the construction or maintenance of such public works, whether the same be done 
by the City directly or by a contractor for the City, the Company shall, at its own 
cost and expense, protect or move its wires or other electrical conductors or equip- 
ment in the manner directed by the City officials having jurisdiction over such public 
works. 

Ninth — The wires or other electrical conductors and equipment to be installed 
by the Compan}-. whether the same be under streets and avenues or in and upon 
private property, shall be constructed and maintained subject to the approval and 
under the supervision and control of the Commissioner of Water .Supph', Gas and 
Electricity. 

Tenth — It is a condition of this contract that the Company shall bear the entire 
expense of all work undertaken by reason of this grant. 

Eleventh — Upon the termination of the original term of this contract, or, if the 
contract be renewed, then at the termination of the said renewal term, or upon the 
lerraination of the rights hereby granted for any cause, or upon the dissolution of the 
Company before such termination, any wires or other electrical conductors and 
equipment of the Company constructed pursuant to this contract within the streets 
and avenues shall become the property- of the City without cost, and the same may 



12 



be used or disposed of by the City for any purpose whatsoever, or the same may be 
leased to any company or individual. 

If, hovirever, at any time preceding the date upon which this contract shall 
terminate, the Board shall so order, by resolution, and give notice to the Company, 
the Company shall, upon the termination of this contract, remove from the streets 
any and all of its wires or other electrical conductors and equipment constructed 
pursuant to this contract. 

Twelfth — The plant, wires or other electrical conductors, connections, instruments 
and all appurtenances thereto shall be constructed, maintained and operated in the 
latest approved manner and with the most modern and improved appliances, and it 
is hereby agreed that the Board may require the Company to improve or add to such 
plant, wires or other electrical conductors, connections, instruments and appurtenances 
from time to time as such additions or improvements are determined by the Board, 
after a hearing, to be reasonable and necessary. Upon failure on the part of the 
Company to comply with the direction of the Board within a reasonable time, the 
rights hereby granted shall cease and determine. 

Thirteenth — Upon the application of any person, firm or corporation whose prem- 
ises are located within a distance of one mile in any direction from any central office 
maintained by the Company and who or which shall agree, in writing, to accept and 
pay for such service for at least one (1) month, the Company shall extend, or obtain 
the extension of, wires or other electrical conductors to such premises and furnish 
service to such applicant at rates not exceeding those herein prescribed or hereinafter 
fixed by the Board, as herein provided. 

Fourteenth — The rates to be charged by the Company for automatic baseball 
scoreboard service, which shall include the cost of installing and connecting the board, 
rental for the use of the board, and all service of any kind necessary for or incidental 
to the proper operations of the board, shall not exceed the following : 

To subscribers making seasonal contracts, one hundred and eighty dollars ($180) 
per board per season. 

To subscribers making monthly contracts, thirty-five dollars ($35) per board per 
month. 

The seasonal service shall at least include the period beginning April 15 and ending 
October 15 in each year, but neither such seasonal service nor the monthly service 
above specified shall include service in connection with the so-called " World's Series " 
of baseball games, which shall be deemed to be special service. For such special 
service the Company may charge to seasonal or monthly subscribers not to exceed 
five dollars ($5) per board per day in addition to the seasonal or monthly rate, and 
to subscribers for such special service only not to exceed twenty dollars ($20) per 
board per day. 

The Board shall have power to regulate the maximum and minimum rates for 
all service and the Company agrees to abide by such rates, provided that they be 
reasonable and fair. 

Fifteenth — Should the Company fail to carry on its operations for any period 
of two (2) consecutive months between April 15 and October 15, in any year, the 
Board may forfeit the right and privilege hereby granted. 



13 



Sixteenth — Should the Company lay or construct its own wires, or other electrical 
conductors, in the ducts, conduits or subways of any company or corporation, or of 
the City, as herein provided, it shall file with the Board, not later than February 1 
of each year, a map or plan upon which the wires or other electrical conductors laid 
or constructed during the year ending December 31 preceding shall be plainly indi- 
cated. The Company shall also file with the Department of Water Supply, Gas and 
Electricity, on or before the 10th day of each month, a map or plan plainly indicating 
the wires or other electrical conductors laid or constructed by it within the preceding 
month. 

Seventeenth — Tlie Company shall submit to the Board a report not later than 
February 1 of each year for the year ending December 31 next preceding, and at any 
other time upon request of the Board, which shall state: 

1. The amount of stock issued, for cash, for property. 

2. The amount paid in as by last report. 

3. The total amount of capital stock paid in. 

4. The funded debt as by last report. 

5. The total amount of funded debt. 

6. The floating debt as by last report . 

7. The total amount of floating debt. 

8. The total amount of funded and floating debt. 

9. The average rate per annum of interest on funded debt. 

10. The dividends paid during the year. 

11. The total amount expended for same. 

12. The names of the directors elected at the last meeting of the corporation held 

for such purpose. 

13. The location, value and amount paid for real estate owned by the Company 

as by last report. • 

14. The location, value and amount paid for real estate now owned by the Com- 

pany. 

15. The dates when the operating season commenced and terminated ; the number 

of days the service was in operation. 

16. The total receipts of the Company — 

(a) From subscribers furnished with seasonal service. 

(b) From subscribers furnished with monthly service. 

(c) From subscribers furnished with special service. 

(d) From any other source. 

17. The total number of subscribers supplied with service — 

(a) Under seasonal contracts, 

(b) Under monthly contracts. 

(c) Under contract for special service, 

and the name and address of each subscriber, together with the period of 
time during which service was supplied and the rates charged to each. 
If service supplied from more than one central oflPice of the Company, the 
subscribers from each central office to be hsted separately. 



14 



18. The number of wire circuits rented or leased by the Company from any 

corporation ; the name of the corporation from whom such circuits were 
leased; the mileage of each circuit; the total mileage; the rental paid per 
mile and per circuit and the total rental paid. 

19. If any wires or other electrical conductors are laid or constructed by the 

Company, the kind, number and length of such wires or conductors and 
the amount paid to the subway company as rental for the use of its ducts. 

20. The amounts paid by the Company for damage to persons or property on 

acount of construction or operation. 

21. The total expenses for operation, including salaries, and such other informa- 

tion in regard to the business of the Company as may be required ty the 
Board. 

With each annual report shall be submitted a copy of any lease or other agree- 
ment in effect during the year between the Company and any other company or cor- 
poration for the use of cables, wires, ducts or conduits, and also a copy or copies (if 
more than one in use) of the service contract or contracts used by the Company. 

Eighteenth— The Company shall at all times keep accurate .books of account of 
its gross annual receipts and shall, on or before February 1 of each year, make a 
verified report to the Comptroller of the business done by the Company for the year 
ending December 31 next preceding, in such form as he may prescribe. Such report 
shall contain a statement showing : 

(a) The number of subscribers furnished with seasonal service and the rates 

paid for such service, 

(b) The number of subscribers furnished with monthly service and the rates paid 

for such service, 

(c) The number of subscribers furnished with special service and the rates paid 

•for such service, 

(d) The number of months or days of service furnished on each basis, 

(e) The gross receipts of the Company from each class of service, 

(f) The receipts of the Company from any other source, and such other informa- 

tion as the Comptroller may require. 

The Comptroller shall have access to the books and records of the Company for 
the purpose of ascertaining the correctness of its report and may examine its officers 
and employees under oath. 

Nineteenth — In case of any violation or breach or failure to comply with any 
of the provisions herein contained, or with any orders of the Board or of any official 
of the City acting under the powers herein reserved, the right and privilege hereby 
granted may be forfeited by resolution of the Board, which said resolution may con- 
tain a provision to the effect that the wires or other electrical conductors and equip- 
ment constructed by the Company under and pursuant to this contract shall become 
the property of the City without proceedings at law or in equity; provided, however, 
that such action by the Board shall not be taken until the Board shall give notice to 
the Company to appear before it on a certain day, not less than ten (10) days after 
the date of such notice, to show cause why such resolution declaring this right and 



15 



privilege forfeited should not be adopted. In case the Company fails to appear, 
action may be taken by the Board forthwith. 

Any false entry in the books of the Company or false statement in its reports to 
the Comptroller as to a material fact, knowingly made by the Company, shall consti- 
tute such a violation or breach or failure to comply with the provisions herein con- 
tained as to warrant the forfeiture of the right and privilege hereby granted. 

Nothing herein contained shall affect in any way the right of the Company to 
apply to a court of competent jurisdiction for a review of any action of the Board 
forfeiting the right and privilege hereby granted. 

Twentieth — This grant is upon the express condition that the Company, within 
thirty (30) days after the signing of this contract by the Mayor, and before anything 
is done in exercise of the right and privilege hereby granted, shall deposit with the 
Comptroller of the City the sum of three thousand dollars ($3,000), either in money 
or securities to be approved by the Comptroller, which fund shall be security for the 
performance by the Company of all the terms and conditions of this contract and 
for its compliance with all the orders of the Board and of the officials of the City 
acting under the powers herein reserved. From the said fund deductions may be 
made as hereinafter provided. 

(a) Should the Company, within such time after notice as may be herein pre- 
scribed, or, where no time is prescribed, within such time as the Board or the proper 
official of the City may hereafter prescribe, fail to comply with the provisions of this 
contract or with the orders of the Board or of the officials of the City herein named 
or referred to, relating to — • 

Protecting the City's structures during the construction, reconstruction or repair 

of the wires or other electrical conductors hereby authorized, 
Moving and protecting the Company's wires or other electrical conductors during 
the performance of any public work or as may be required on account of the 
changing of the lines or grades of the streets. 
Or with any other provision of this contract which may aft'ect the repair, protec- 
tion and maintenance of the streets or of the City's structures within the streets, 
the City shall have the right to cause the work to be done or the defect remedied and 
to reimburse itself for the cost of such work, by deducting such cost, with interest, 
from the security fund hereinabove provided for. Such deduction shall be made by 
the Comptroller upon the direction of the Board. 

(b) Should the Company, within ten (10) days after demand has been made 
upon it, fail to repay to the City any damages caused to persons or property which 
the City shall be compelled to pay by reason of the construction, maintenance or 
operation of the wires or other electrical conductors hereby authorized, or by reason 
of any acts or defaults of the Company in connection therewith, the City shall have 
the right to collect damages, with interest, by deducting the amount of the same from 
the security fund hereinabove provided for. Such deduction shall be made by the 
Comptroller upon the direction of the Board. 

(c) Should the Company fail to pay to the City the annual charges required to 
be paid by this contract within the time fixed for the payment thereof, the City shall 



16 



have the right to collect the amount of such charges, with interest, by deducting the 
same from the security fund hereinabove provided for. Such deduction shall be 
made by the Comptroller without further or other direction. 

(d) Should the Company fail to comply with the provisions of this contract, or 
with the orders of the Board or of the officials of the City herein named or referred 
to, then the Company may be required to pay to the City, as liquidated damages for 
each breach or violation, the following sums : 

For failure to give efficient public service at rates not exceeding those herein 
fixed, or to maintain its structures and equipment in good condition throughout the 
whole term of this contract, the sum of two hundred and fifty dollars ($250) for 
each day during which the default or defect remains. 

For failure to comply with any other provision of this contract as to which 
liquidated damages are not fixed herein, the sum of fifty dollars ($50) per day for 
each day during which such failure or default shall continue. 

All of such sums may be collected by deducting the same from the security fund 
hereinabove provided for. 

The procedure for the collection of such liquidated damages shall be as follows : 

Whenever the Board shall have knowledge of any such breach or violation on 
the part of the Company, the Board shall give notice to the Company, specifying the 
nature of such breach or violation and the amount of liquidated damages which it is 
proposed to collect therefor, and directing its President or other officer to appear 
before the Board on a certain day, not less than ten (10) days after the service of 
such notice, to show cause why the Company should not be required to pay such 
liquidated damages in accordance with the foregoing provisions. If the Company 
fail to make an appearance, or, after a hearing, appears in the judgment of the Board 
to be in fault, the Board shall forthwith direct the Comptroller to collect such liqui- 
dated damages by deducting the amount of the same from the security fund herein- 
above provided for. 

(e) In case of any deductions from the security fund pursuant to this contract, 
either for the reimbursement of the City for work done by it or amounts expended 
by it on behalf of the Company, or amounts paid by it to any person by reason of 
any act or default of the Company, or for the collection by the City of the annual 
charges herein provided, or of liquidated damages, the Company shall, upon ten (10) 
days notice by the Comptroller, deposit with the Comptroller a sum, either in money 
or securities, sufficient to restore such security fund to its original amount of three 
thousand dollars ($3,000), and in default thereof, the right and privilege hereby granted 
may be forfeited by the City as herein provided. 

(f ) Should the right and privilege hereby granted be. forfeited pursuant to the 
provisions of this contract, or should such right and privilege be terminated upon the 
dissolution of the Company as herein provided, the security fund hereinabove pro- 
vided for shall be forfeited to the City as liquidated damages for failure of the Com- 
pany to perform this contract pursuant to the terms hereof. 

No action or proceeding or right under the provisions of this subdivision shall 
affect any other legal rights, remedies or causes of action belonging to the City. 

The provisions for the reimbursement of the City for work done by it or amounts 



17 



expended by it on behalf of tlie Company, or amounts paid by it to any person by 
reason of any act or default of the Company, or for the collection by it of the annual 
charges, or of liquidated damages, are and shall be in addition to the City's right, as 
herein reserved, to forfeit the right and privilege hereby granted. 

Twenty-first — The Company shall assume all liability to persons or property by 
reason of the construction, maintenance or operation of the wires or other electrical 
conductors and equipment hereby authorized, and it is a condition of this contract 
that the City shall assume no liability whatsoever to either persons or property on 
account of the same, and the Company shall repay to the City the amount of any 
damages which the City shall be compelled to pay by reason of any acts or default 
of the Company. 

Twenty-second — This right and privilege is granted subject to whatever right, title 
or interest the owners of abutting property or others may have in or to the streets 
and highways in which the Company is authorized to lay, construct, maintain or oper- 
ate its wires or other electrical conductors. 

Twenty-third— The words "notice" or "direction" wherever used in this contract, 
shall be deemed to mean a written notice or direction. Every such notice or direction 
to be served upon the Company shall be delivered at such office in the City as shall 
have been designated, or if no such office shall have been designated, or if such 
designation shall have for any reason become inoperative, shall be mailed in the City, 
postage prepaid, addressed to the Company at the City. Delivery or mailing of such 
notice or direction as and when above provided shall be equivalent to direct personal 
notice or direction, and shall be deemed to have been given at the time of delivery or 
mailing. 

Twenty-fourth — The words "streets or avenues " and "streets and avenues," wher- 
ever used in this contract, shall be deemed to mean streets, avenues, highways, park- 
ways, driveways, concourses, boulevards, bridges, viaducts, tunnels, public places, or 
any other property to which the City has title or over which the public has an ease- 
ment, in, along or under which the Company is hereby authorized to construct, main- 
tain or use wires or other electrical conductors. 

Twenty-fifth — If at any time the powers of the Board or any other of the authori- 
ties herein mentioned or intended to be mentioned, shall be transferred by law to 
any other board, authority, officer or officers, then and in such case such other board, 
authority, officer or officers, shall have all the powers, right and duties herein reserved 
to or prescribed for the Board or other authorities, officer or officers. 

Sec. 3. Nothing in this contract shall be construed as in any way limiting the 
present or future jurisdiction of the Public Service Commission under the laws of 
the State of New York. 

Sec. 4. The Company promises, covenants and agrees on its part and behalf, 
during the entire term of this contract, whether original or renewal, to conform to 
and abide by and perform all the terms, conditions and requirements in this contract 
fixed and contained. 

In Witness Whereof, the party of the first part, by its Mayor, thereunto duly 
authorized by the Board of Estimate and Apportionment of said City, has caused 
the corporate name of said City to be hereunto signed and the corporate seal of said 



18 



City to be hereunto affixed; and the party of the second part, by its officers, thereunto 
duly authorized, has caused its corporate name to be hereunto signed and its corporate 
seal to be hereunto affixed, the day and year first above written. 

THE CITY OF NEW YORK, by , Mayor. 

(Corporate Seal.) 

Attest: , City Clerk. 

THE AUTOMATIC SCOREBOARD COMPANY, INC., By , President. 

(Seal.) 

Attest: , Secretary. 

(Here add acknowledgments.) 



LIBRARY OF CONGRESS 




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LIBRARY OF CONGRESS 



029 604 657 7 



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Hollinger Ci 

pH 8.5 



LIBRftRY OF CONGRESS 




029 604 657 7 



